The Mountain Journal
Factories in the Mt Kenya region registered a significant drop in the tea bonus payout, as those in the western region got minimal relief.
The drop in the East is attributed to the impact of the tea levy, among other costs of production experienced during the year 2025/2026, and farmers seek clarification.
The tea levy was implemented on May 1, by the Ministry of Agriculture, now under the control of the Tea Board of Kenya (TBK), under which the KRA was mandated to collect Sh 2.28 (0.8 percent) per kg of made tea sold through the Mombasa Tea Auction or the factories’ direct sale platform.
Factories within the Mt Kenya region suffered as the buyers declined to buy tonnes of the premium teas, and instead they migrated to Rwanda for the unlevied teas, and the western side for the low-priced teas. In Murang’a, Kangema MP Peter Kihungi has questioned why the factories in KTDA Zone 2, have continued getting better bonus perks’ than those in KTDA Zone three comprising Githambo, Kenyanye ini, Gatunguru and Kiru.
KTDA National Chairman Enos Njeru confirmed that the impact of the tea levy remained enormous, calling for its suspension or amendment to charge the volumes instead of being centred at the kilogrammes bought.
Njeru said the bonus calculation is based at the factory level, where the directors analyse the payment to the farmers in the year starting on July 1 to June 30, compared to the production cost.
“We have lobbied among the policymakers on the suspension of the tea levy, as the directors offered discounts to save the teas from being returned to the warehouses,” said Mr Njeru.
Nahason Ngari, a farmer at Mununga tea factory, says the majority of the farmers and the stakeholders blame the tea levy for turning fortunes upside down, as many buyers moved to Rwanda to avoid paying more for the tea.
Nahason Ngari, a former KTDA director in Kirinyaga, challenges KTDA to explore
an international commercial-paper mechanism to raise sufficient working capital for large-scale fertilizer procurement.
Ngari further points out that the farmer pays more for labour, fertilizer, transport and energy, followed by expensive factory maintenance.
“Inflation steadily reduces the purchasing power of every shilling received by the grower. As the international tea market remains competitive and unpredictable,” said Ngari.
In the factory bonus declaration, Rukuriri factory pays Sh 50 per kg, compared to Sh 57.50 in the year 2024/2025; Gacharage Sh 49 against Sh 51.1; Ngere Sh 48 (Sh 53.1).
Others are Gathuthi Sh 47.50 (Sh 56), Imenti Sh 47 (Sh 56), Mununga Sh 47 (Sh 57), Kiegoi Sh 45.50 (Sh50.2), Njunu Sh 45.20 (Sh 50), Makomboki Sh 45 (Sh 47), Ikumbi Sh 40 (Sh45)..
In the west region those that registered a gain led by Momul Sh 34 (Sh 32.5), Kobel Sh 16, (Sh 12), Leiten Sh 18, (Sh 17). Nyansiongo Sh 30(Sh 22); Kapket Sh 25,(Sh 24), among others.
